In the second quarter, midsize regional banks did not experience the largest deposit reductions, while industry giants like JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo lost $262 billion in deposits.

However, regional banks regained deposits, and investors rewarded them by raising their stocks.

This reversal was due to regional banks needing deposits more than giants and paying higher rates.

The deposit differential reversed after the failures of Silicon Valley Bank, Signature Bank, and First Republic.